From India

The asset can produce up to 17 mmscmd of natural gas and 75,000 barrels of oil per day by 2020

The new investment may boost ONGC’s natural gas output by a quarter and crude oil production by almost 15% over the next 4-5 years, a major leap for a company often criticized for failing to arrest a production decline from its ageing fields. Photo: Reuters

Mumbai: India’s Oil and Natural Gas Corp. Ltd said it will unveil an investment of around $5 billion by the end of March to develop a major gas asset in the east, with a view to tapping higher gas prices.

The asset, which the state-owned company acquired in 2005 under a swap agreement with UK’s Cairn Energy Plc, can produce up to 17 million metric standard cubic metres per day (mmscmd) of natural gas and 75,000 barrels of oil per day by 2020.

The level of output will make it ONGC’s second biggest hydrocarbon asset in India, D.K. Sarraf, chairman and managing director of the country’s biggest explorer, told reporters on Saturday. He indicated that the investment could be more than $5 billion.

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